Three years ago, James Dolan found himself at the center of a controversy that extended far beyond basketball. The New York Knicks owner’s decision to use facial recognition technology at Madison Square Garden to deny entry to lawyers from firms involved in litigation against the company sparked a high-profile dispute with New York regulators. That policy drew the attention of the State Liquor Authority (SLA). They questioned whether excluding members of the public through biometric surveillance violated state beverage laws. Now, that long-running dispute has finally come to an end.

In a quiet decision issued last week, the SLA allowed the venues to keep their liquor licenses after imposing $10,000 fines on Madison Square Garden, the Beacon Theater, and Radio City Music Hall. That brings the total fine to $30,000.

Although the venues were fined, the results could have been grimmer. MSG risked losing its ability to sell alcohol along with facing financial penalties. Following the clearance, they released a statement, per The New York Times.

“No one wants to cross an organization that’s winning,” Manhattan borough president Brad Hoylman-Sigal told The New York Times. “In particular one that just won the national championship.”

Hoylman-Sigal also said he was “disappointed” that the liquor authority was not “more aggressive in interpreting its authority to ban facial recognition technology.”

He added, “It’s unacceptable that fans visiting a venue can be profiled in such a manner that violates their personal privacy.”

Whilst that is the end of the legal dispute, there is no denying that over the years, Dolan has fiercely gone on to defend the policy. At the height of the facial recognition dispute in January 2023, Dolan had appeared on Good Day New York to defend MSG’s position.

“Will the fans care if the State Liquor Authority took away MSG’s liquor license? “They don’t care at all. Who, I mean, we’re talking about a small group of attorneys, lawyers, right?” Dolan said. “Why would the Knicks fans or the Rangers fans or the concertgoers care about them? They don’t. But I will tell you one thing. The SLA is way, way beyond their skis.”

He added that he reached out to the SLA, but they had been “extremely aggressive” and that they were going to revoke James Dolan & Co.’s liquor license.

“So I have a little surprise for them to help because they’re basically doing this for publicity. So we’re going to give them some publicity, all right?” he said. “What we’re going to do is we’re going to pick a night, maybe a Rangers game, and we’re going to shut down all the liquor and alcohol in the building.”

Now, although the liquor license dispute eventually wound down, questions surrounding MSG’s security operations continued to surface. Earlier in April, investigative journalist Pablo Torre and The Wired correspondent Noah Schachtman revealed insights into the security measures James Dolan and Co. had taken in and around the Garden.

Schachtman claimed the response from MSG’s security team went far beyond what the situation required. He said staff treated a teenager in Colorado’s social media post as a serious threat, even involving local police.

Meanwhile, in September 2025, former MSG security executive Donald Ingrasselino sued Madison Square Garden Entertainment, alleging that he was fired after raising concerns about the company’s surveillance practices. He also accused the establishment of disability and age discrimination, unlawful data collection, and fostering a rather hostile workplace culture.

Ingrasselino alleged that his job involved collecting sensitive information on individuals targeted by the organization. He claimed that he was directed to obtain photographs, Social Security numbers, financial information, and details about family members. He also alleged that MSG lacked the proper safeguards to store and keep such sensitive information.

Despite all that scrutiny, the 71-year-old Knicks owner never wavered. He argued that Madison Square Garden’s principles mattered more than alcohol sales and insisted the venue had every right to protect itself. He also made it clear that legal battles or threats to its liquor license would not force a change, expressing confidence that fans would keep filling the arena regardless. Now, a $30K fine clears him of all charges.